Tesla Inc raises $1.2 billion, 20 percent higher than planned

Tesla Inc stated on Friday it had raised about $1.2 billion, approximately 20 percent more than it had planned, after selling common shares and convertible debt, prior the launch of the vital Model 3 sedan.

The automaker, led by Elon Musk, stated it sold 1.3 million common shares at $262 each to raise $350 million which it raised another $850 million though the sale of convertible senior notes due 2022.

The automaker stated on Wednesday it was set to sell $250 million worth of stock and $750 million in notes.

Tesla had been expected to raise capital since 2016, with the expectations acquiring steam last month after Musk said the business could be “close to the edge” on money requirements.

Musk had Tesla was thinking about a number of alternatives, including raising capital, to lower risk ahead of the upcoming Model 3 sedan, the $35,000 mass-market automobile on which the automaker’s future profitability hinges.

Tesla said Musk, already the company’s leading investor with a stake of about 21 percent since December, purchased 95,420 typical shares for $25 million in the most recent stock sale.

The 1.3 million shares sold accounts for 0.8 percent of Tesla’s outstanding shares as of December 31.